On January 1, 2018, Brooks Corporation exchanged $1,259,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal to $1,145,000. Chandler's individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $264,000 with an estimated remaining life of six years. The Chandler acquisition was Brooks's only business combination for the year. In case expected synergies did not materialize, Brooks Corporation wished to prepare for a potential future spin-off of Chandler, Inc Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value. On December 31, 2018, each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period. Brooks Corp Chandler Inc. Income Statement $ (662,000) 173,000 (150,000) 140,000 (166,000) Revenues Cost of goods sold Gain on bargain purchase Depreciation and amortization Equity earnings from Chandler $ (553,000) 196,000 0 147,000 0 Net income 665,000) (210,000) Statement of Retained Earnings Retained earnings, 1/1 Net income (above) $ (1,800,000) (665,000) 200,000 S (845,000) (210,000) 50,000 Dividends declared Retained earnings, 12/31 $(2,265,000) $(1,005,000) Balance Sheet Current assets 371,000 528,000 1,525,000 115,000 341,000 Investment in Chandler C 225,000 412,000 Trademarks Patented technology Equipment 683,000 310,000 1,475,000 3,035,000 Total assets Liabilities $(235,000) (535,000) $ (170,000) (300,000) (1,005,000) Common stock Retained earnings, 12/31 (2,265,000) (3,035,000) Total liabilities and equity $(1,475,000 Note: Parentheses indicate a credit balance. a. Determine the following account balances: Gain on bargain purchase. Earnings from Chandler. Investment in Chandler. b. Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a December 31, 2018, consolidated worksheet for Brooks and Chandler. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.) BROOKS AND CHANDLER Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Consolidated Totals Chandler Accounts Brooks Debit Credit Income Statement (662,000) $ (553,000) Revenues 196,000 Cost of goods sold 173,000 Gain on bargain purchase (150,000) 0 Depreciation and amortization 140,000 147,000 Equity earnings in Chandler (166,000) (665,000) $ (210,000) Net income Statement of Retained Earnings Retained earnings, 1/1 $(1,800,000) (845,000) Net income (210,000) (665,000) Dividends declared 200,000 50,000 $(2,265,000) $ (1,005,000) Retained earnings, 12/31